20 September 2020 ~ 0 Comments

The beloved detached home and its pursuit by Toronto buyers

With the covid 19 pandemic still hovering around us, what impact has it had on real estate values throughout Toronto? Well, that depends on who you ask.

Are you a buyer looking for the coveted detached house, or are you a seller looking to move from your two-bedroom condo? Ask the condo investor seller who is looking to cash out one one of their rental condos ‘where have all the buyers gone?’ that were lining up twenty deep on some units only a mere six months ago. The answers vary.

Herd mentality has been prevalent in Toronto’s real estate market (and I suspect elsewhere as well) for as long as I can remember. When hoards of buyers are out shopping for their dream home, they often find themselves tripping over other buyers as we navigate in and out of the select few homes currently for sale. When turbulence shows up, its crickets, except for the bold and savvy few.

When they do get the butterfly in the belly feeling about finding “the one”, and move forward with placing an offer to purchase, chances are high that our offer won’t be the only one.

So how can a buyer capitalize as best as possible in a scorching hot marketplace? Step back and possibly reassess your needs. There are always opportunities to be found.

For example, detached homes have always been high on many a buyers list, which isn’t an unrealistic expectation to have before one sits down with me during our consultation and discusses their plans on buying. After going over the many variables that go in to mapping out the plan of action, I sometimes get the sense that buyers feel owning a detached home insulates them against any potential downturns in the value of a property.

Yes there are tangible reasons as well that go along with their wishes, but for some reason detached has trumped out owning a semi-detached, townhouse or well laid out floorpan of a condo.

Lifestyle needs aside, all of these other housing options provide opportunity to make a happy and comfortable home, along with the hope over time of an increase in price appreciation.

Detached homes average above $1.5 million in the 416 area code. The 905 average is currently just shy of $1.1 million. These are the averages! When you look year-over-year the 21.4% increase looks absurd, but pandemic fever along with a summer market filled with springtime sellers and buyers, and it’s not a typical apples to apples comparison.

The good news if you look at the other property types through the same lens, is that prices are holding up and all have increased year over year.

Interest rates are truly at rock bottom making owning real estate better than putting your hard earned savings into the bank. With so many buyers competing for property, looking for the opportunities can lead to savings.

Needs aside as mentioned above, if you can lock down that much coveted detached home, kudos to you! If not, consider the other opportunities that exist. Come 2021 if the average value has increased another 20% across the board, many will be kicking themselves as their rate of savings will come nowhere close to what would have been lost gains in the market.

Leave a Reply